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Greatland Gold PLC (LSE:GGP) has entered discussions to acquire the Havieron development and the nearby Telfer gold mine from its partner Newmont in a deal valued at A$500 million (£254 million). This potential transaction comes after reports from Australia over the weekend indicated that the majority of the deal would be financed by Wyloo, a key shareholder in Greatland. An exclusivity period has been signed with Newmont to facilitate the completion of the deal.
Wyloo, the investment arm of mining magnate Andrew Forrest, became Greatland's largest shareholder in 2022. The Havieron gold and copper prospect, located in the Pilbara region of Western Australia, was originally discovered and developed by Greatland in partnership with Newcrest. Following Newmont’s acquisition of Newcrest last year, the US-based group classified both Havieron and Telfer, an active gold mine also situated in Pilbara, as non-core assets that were slated for sale.
Greatland holds a right of first refusal for Havieron under the terms of its joint venture with Newcrest/Newmont, where it holds a 30% stake while Newcrest/Newmont retains 70%. The terms of the proposed acquisition remain confidential, but Greatland has confirmed that the consideration for the transaction would involve a combination of upfront cash, deferred payments, and equity. The deal also hinges on Newmont completing remediation work on the Telfer tailings storage facility.
The transaction, subject to the rules of the AIM market, would be structured as a reverse takeover, meaning it could significantly reshape Greatland’s business. As a result, shares in Greatland have been suspended in both the UK and Australia while the transaction proceeds.
At the time of the share suspension, Greatland's stock was priced at 6.95p, giving the company a market valuation of £350 million. The acquisition, if successful, would further strengthen Greatland’s presence in the region and position it for long-term growth in gold and copper production.
The focus now is on finalising the details of the agreement, with Greatland and its backers working towards completing the transaction while awaiting further updates regarding the deal’s progress and the fulfillment of necessary conditions for its completion.
